Core Belief: Companies create wealth, not markets
Aims to Identify Prominent Businesses, Competent Management, at Reasonable Valuations
1st Filter: Business
- Company growing faster than industry & industry faster than market
- Qualitative assessment based on the concept of “economic moats*”
- Foreseeable changes in business leading to a positive outcome
2nd Filter: Management
- Focused on growth, improving margins & prudent capital allocation
- Competent managers with a credible track record
- Fair corporate governance standards, with aligned shareholder interests
3rd Filter: Valuation
- Cash flow is central in our Investment Process about a company’s value
- Evaluation of margin of safety required according to the ‘moat’ and competence of management
- Better risk reward profile